1. Compute these solvency ratios for Target, for the two most recent years for Target. For Interest Expense, use Net Interest Expense for Target.

• Times Interest Earned
• Debt-to-Equity
• Debt

TARGET CORPORATION 2020 Form 10-K 34 FINANCIAL STATEMENTS Table of Contents Index to Financial Statements Consolidated Statements of Operations $ 2020 92,400 $ 1,161 93,561 66,177 18,615 2019 77,130 $ 982 78,112 54,864 16,233 2018 74,433 923 75,356 53,299 15,723 2,230 6,539 977 16 5,546 1,178 4,368 (millions, except per share data) Sales Other revenue Total revenue Cost of sales Selling, general and administrative expenses Depreciation and amortization (exclusive of depreciation included in cost of sales) Operating income Net interest expense Net other (income) /expense Earnings from continuing operations before income taxes Provision for income taxes Net earnings from continuing operations Discontinued operations, net of tax Net earnings Basic earnings per share Continuing operations Discontinued operations Net earnings per share Diluted earnings per share Continuing operations Discontinued operations Net earnings per share Weighted average common shares outstanding Basic Diluted Antidilutive shares Note: Per share amounts may not foot due to rounding. 2,357 4,658 477 (9) 4,190 921 3,269 12 3,281 $ 2,224 4,110 461 (27) 3,676 746 2,930 7 2,937 $ 4,368 $ $ 8.72 $ 6.39 $ 0.02 6.42 $ 5.54 0.01 5.55 $ 8.72 $ $ 8.64 $ 6.34 $ 0.02 6.36 $ 5.50 0.01 5.51 $ 8.64 $ 500.6 505.4 510.9 515.6 528.6 533.2 TARGET CORPORATION 2020 Form 10-K 36 FINANCIAL STATEMENTS Table de content Index to Financial Statements Consolidated Statements of Financial Position January 30, February 1, 2021 2020 8,511 $ 10,653 1,592 20,756 2,577 8,992 1,333 12,902 6,141 31,557 5,914 2,765 780 (20,278) 26,879 2,227 1,386 51,248 $ 6,036 30,603 6,083 2,692 533 (19,664) 26,283 2,236 1,358 42.779 $ (millions, except footnotes) Assets Cash and cash equivalents Inventory Other current assets Total current assets Property and equipment Land Buildings and improvements Fixtures and equipment Computer hardware and software Construction-in-progress Accumulated depreciation Property and equipment, net Operating lease assets Other noncurrent assets Total assets Liabilities and shareholders' investment Accounts payable Accrued and other current liabilities Current portion of long-term debt and other borrowings Total current liabilities Long-term debt and other borrowings Noncurrent operating lease liabilities Deferred income taxes Other noncurrent liabilities Total noncurrent liabilities Shareholders' investment Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss Total shareholders' investment Total liabilities and shareholders' investment $ 12,859 $ 6,122 1,144 20,125 11,536 2,218 9,920 4,406 161 14,487 11,338 2,275 1,122 1,724 16,459 990 1,939 16,683 42 6,329 8,825 (756) 14,440 51,248 $ 42 6,226 6,433 (868) 11,833 42,779 $ 2020 2019 2018 $ 4,368 $ 3.281 $ 12 3,269 2,937 7 2,930 4,368 2,485 200 (184) 512 86 2,604 147 178 10 29 2,474 132 322 95 (1,661) (137) 2.925 1,931 10,525 505 18 140 199 7,099 18 7.117 (900) (299) 1,127 89 5,970 3 5,973 10,525 Consolidated Statements of Cash Flows (millions) Operating activities Net earnings Earnings from discontinued operations, net of tax Net earnings from continuing operations Adjustments to reconcile net earnings to cash provided by operations: Depreciation and amortization Share-based compensation expense Deferred income taxes Loss on debt extinguishment Noncash losses (gains) and other, net Changes in operating accounts: Inventory Other assets Accounts payable Accrued and other liabilities Cash provided by operating activitiescontinuing operations Cash provided by operating activitiesdiscontinued operations Cash provided by operations Investing activities Expenditures for property and equipment Proceeds from disposal of property and equipment Other investments Cash required for investing activities Financing activities Additions to long-term debt Reductions of long-term debt Dividends paid Repurchase of stock Stock option exercises Cash required for financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Supplemental information Interest paid, net of capitalized interest Income taxes paid Leased assets obtained in exchange for new finance lease liabilities Leased assets obtained in exchange for new operating lease liabilities (2,649) 42 16 (2,591) (3,027) 63 20 (2,944) (3,516) 85 15 (3,416) 2,480 (2,415) (1,343) (745) 23 (2,000) 5,934 2,577 8,511 $ 1,739 (2,069) (1,330) (1,565) 73 (3,152) 1,021 1,556 2,577 $ (281) (1,335) (2,124) 96 (3,644) (1,087) 2,643 1,556 $ $ 939 $ 1,031 428 262 492 $ 696 379 464 476 373 130 246